Categorizing a Transfer between Checking Accounts

UPDATE: It seems some of these reimbursements have shown up in both accounts and also been attributed to the correct expense account. Was this done in the "downloaded transactions" window inadvertently? How do I rectify the transactions that wont categorize now that they have been put in the register?

Thanks

Managing transactions across both business and personal accounts can be complex, Andrew. It involves creating journal entries to ensure precise financial recording. Let's break this down step-by-step to ensure everything is accurately reflected in your reports.

First, I appreciate the details you provided about the reimbursement and how it doesn't impact the Profit and Loss (P&L) report as you expected. Ideally, it's recommended not to mix business and personal funds to streamline the accounting process and enhance accuracy. Since this covers a complex financial process, I'll only provide general guidance on addressing this matter. I recommend consulting an accountant throughout this workflow for expert advice tailored to your specific situation.

Create a Journal Entry for Business Expenses Paid with a Personal Credit Card:

1. Go to the top menu and select Banking.
2. Choose Make General Journal Entries.
3. Create a journal entry debiting the expense and crediting an equity account to record the business expenses paid with the personal credit card.

In doing this, the purchase will already show up on the Profit and Loss report.

Record the Personal Credit Card Payment:

• Make another journal entry to document the personal credit card payment with the personal checking account. This involves debiting the equity account and crediting the personal checking account.

Record the Reimbursement Transaction:

1. From the top menu, go to Banking.
2. Select Write Checks.
3. Please fill out the form and ensure it affects the equity account.
4. Click Save & Close.

Additionally, consider consulting your accountant about effectively using the "Other" account type to manage this process. You can use QuickBooks' accountant tool to find a professional in your area for further assistance.

Furthermore, the transactions could have been added in the Downloaded Transactions window, leading to duplicate entries. Delete these duplicates from the bank register to keep your records clean.

To summarize, meticulously documenting each step in QuickBooks and involving an accountant will help ensure your reimbursement transfer reflects correctly against an expense tracking account on the P&L.

Regularly reconciling your QuickBooks accounts is also good practice to ensure they correspond to your bank statements. Here's a guide: Reconcile an account in QuickBooks Desktop.

I'm glad to be a part of your journey towards achieving accurate records in QuickBooks. If you have any other concerns or need further assistance, please know that this thread is always open for you to return to. Wishing you a productive day!

Hello AnneMariee,
The steps you have provided function the same way as a transfer when I gave it a try. It just adds an extra step.
-I created an equity account that has no balance in it
-General Journal Entry: I debit the amount owed from business checking and then credit the equity account. (no where could I categorize this)
-Equity account now has amount to be reimbursed 
-General Journal Entry: I debit the amount owed from equity account and then credit personal checking account
(so far has not changed anything on the P&L)
-Unsure about writing a check, it just debits the personal checking account a second time. (the first time being when the credit card was paid)
I tried writing a check straight from the equity account but I'm not allowed since that isn't an actual physical account. 
Perhaps I am misunderstanding the sequence or I've missed a place where I'm allowed to categorize it at any step of the process. Thanks

Thanks for the detailed response and for sharing the process of how you categorize the banking transactions, Andrew7. I'd like to provide some additional context to make sure the expenses and transfers handled correctly.

When transactions are downloaded and subsequently matched or approved, the system automatically adds them to the bank register. During this process, you'll be able to assign categories to each transaction, classifying them as either income or expense accounts.

Here's an article that talks about this process in details: Add and match transactions in QuickBooks Desktop for Mac.

For manually added transactions, you can indicate it in the Account field when recording checks, credit card charges, or expenses. You can read more details about this in page 163 of this user guide: QuickBooks Mac Plus User's Guide.

Once recorded, they would automatically flow into their respective accounts when running a Profit and Loss report. For transactions that are tagged as Transfer, they would show in both the originating and receiving accounts.

To ensure that transfer transactions are categorized accurately, I suggest reaching out to our dedicated phone support team. They can start a screen-sharing session, enabling them to review transactions in real time and confirm that they are properly classified and accurately reflected in your financial documents.

Here's how to reach out to them:

1. Go to this link: https://quickbooks.intuit.com/learn-support/help/en-us/contact-us.
2. Select QuickBooks for Mac, then click Continue.
3. Choose Contact Us at the bottom of the screen.
4. Enter a brief description of your concern and click Continue.
5. Choose between Chat or Callback.

Let me also share this article for additional resources when using the Online Banking feature: Fix online banking issues in QuickBooks Desktop for Mac.

Please remember that we're always available to assist you. Whether you have questions about banking transactions, need help interpreting financial reports, or require guidance specific to QuickBooks Desktop for Mac, we're committed to ensuring your experience is smooth and your financial data remains accurate.